(Test Bank) Principles Of Operations Management

Heizer,Render, 8

Business

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8th Edition

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1CHAPTER 1: OPERATIONS AND PRODUCTIVITY TRUE/FALSE 1. Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements. True (Global company profile, easy) 2. The production process at Hard Rock Café is lim ited to meal preparation and serving customers. False (Global company profile, easy) 3. All organizations, including service firms such as banks and hospitals, have a production function. True (What is operations management? moderate) 4. Operations management is the set of activities th at create value in the form of goods and services by transforming inputs into outputs. True (What is operations management? easy) 5. An example of a "hidden" production function is money transfers at banks. True (What is operations management? moderate) 6. One reason to study operations management is to learn how people organize themselves for productive enterprise. True (Why study OM, easy) 7. The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. True (What operations managers do, easy) 8. "How much inventory of this item should we ha ve?" is within the critical decision area of managing quality. False (What operations managers do, easy) 9. In order to have a career in operations manage ment, one must have a degree in statistics or quantitative methods. F a l s e ( W h a t o p e r a t i o n s m a n a g e r s d o , e a s y ) 10. Henry Ford is known as the Father of Scientific Management. False (The heritage of operations management, easy) 11. Shewhart’s contributions to opera tions management came during th e Scientific Management Era. False (The heritage of operations management, easy) 12. Students wanting to pursue a career in operati ons management will find multidisciplinary knowledge beneficial. True (Where are the OM jobs? easy) 213. Customer interaction is often high for manufacturing processes, but low for services. False (Operations in the service sector, moderate) 14. Productivity is more difficult to improve in the service sector. True (The productivity challenge, moderate) 15. Manufacturing now constitutes the largest econom ic sector in postindustrial societies. False (Operations in the service sector, moderate) 16. In the past half-century, the number of people employed in manufacturing has more or less held steady, but each manufacturing employee is manufacturing about 20 times as much. True (Operations in the service sector, easy) 17. A knowledge society is one that has migrated from work based on knowledge to one based on manual work. False (The productivity challenge, easy) 18. Productivity is the total value of all inputs to th e transformation process divided by the total value of the outputs produced. False (The productivity challenge, easy) 19. Measuring the impact of a capital acquisition on productivity is an example of multi-factor productivity. False (The productivity challenge, moderate) 20. Ethical and social dilemmas arise because stakehol ders of a business have conflicting perspectives. True (Ethics and social responsibilit y, easy) {AACSB: Ethical Reasoning} MULTIPLE CHOICE 21. At Hard Rock Café, tasks that reflect ope rations or operations management include a . d e s i g n i n g m e a l s b. testing meals (recipes) c. analyzing meals for the cost of ingredients d. preparing employee schedules e. all of the above e ( G l o b a l c o m p a n y p r o f i l e , e a s y ) 22. An operations task performed at Hard Rock Café is a. borrowing funds to build a new restaurant b. advertising changes in the restaurant menu c . c a l c u l a t i n g r e s t a u r a n t p r o f i t a n d l o s s d. preparing employee schedules e. all of the above d ( G l o b a l c o m p a n y p r o f i l e , m o d e r a t e ) 323. Operations management is applicable a. mostly to the service sector b. to services exclusively c. mostly to the manufacturing sector d. to all firms, whether manufacturing and service e . t o t h e m a n u f a c t u r i n g s e c t o r e x c l u s i v e l y d ( W h a t i s o p e r a t i o n s m a n a g e m e n t ? m o d e r a t e ) 24. Which of the following are the primary functions of all organizations? a . o p e r a t i o n s , m a r k e t i n g , a n d h u m a n r e s o u r c e s b . m a r k e t i n g , h u m a n r e s o u r c e s , a n d f i n a n c e / a c c o u n t i n g c. sales, quality control, and operations d . m a r k e t i n g , o p e r a t i o n s , a n d f i n a n c e / a c c o u n t i n g e . r e s e a r c h a n d d e v e l o p m e n t , f i n a n c e / a c c o u n t i n g , a n d p u r c h a s i n g d (Organizing to produce goods and services, moderate) 25. Budgeting, paying the bills, and collection of funds are activities associated with the a . m a n a g e m e n t f u n c t i o n b . c o n t r o l f u n c t i o n c . f i n a n c e / a c c o u n t i n g f u n c t i o n d . p r o d u c t i o n / o p e r a t i o n s f u n c t i o n e . s t a f f i n g f u n c t i o n c (Organizing to produce goods and services, moderate) 26. Which of the following would not be an operations function in a fast-food restaurant? a . a d v e r t i s i n g a n d p r o m o t i o n b . d e s i g n i n g t h e l a y o u t o f t h e f a c i l i t y c . m a i n t a i n i n g e q u i p m e n t d . m a k i n g h a m b u r g e r s a n d f r i e s e . p u r c h a s i n g i n g r e d i e n t s a (Organizing to produce goods and services, moderate) 27. The marketing function's main concern is with a . p r o d u c i n g g o o d s o r p r o v i d i n g s e r v i c e s b . p r o c u r i n g m a t e r i a l s , s u p p l i e s , a n d e q u i p m e n t c . b u i l d i n g a n d m a i n t a i n i n g a p o s i t i v e i m a g e d . g e n e r a t i n g t h e d e m a n d f o r t h e organization's products or services e. securing monetary resources d (Organizing to produce goods and services, moderate) 28. Reasons to study Operations Management include a. studying why people organize themselves for free enterprise b. knowing how goods and services are consumed c . u n d e r s t a n d i n g w h a t h u m a n r e s o u r c e m a n a g e r s d o d. learning about a costly part of the enterprise e. all of the above d ( W h y s t u d y O M ? m o d e r a t e ) 429. Reasons to study Operations Management include learning about a. why people organize themselves for productive enterprise b. how goods and services are produced c . w h a t o p e r a t i o n s m a n a g e r s d o d. a costly part of the enterprise e. all of the above e ( W h y s t u d y O M ? e a s y ) 30. The five elements in the management process are a . p l a n , d i r e c t , u p d a t e , l e a d , a n d s u p e r v i s e b . a c c o u n t i n g / f i n a n c e , m a r k e t i n g , o p e r a t i o n s , a n d m a n a g e m e n t c . o r g a n i z e , p l a n , c o n t r o l , s t a f f , a n d m a n a g e d . p l a n , o r g a n i z e , s t a f f , l e a d , a n d c o n t r o l e . p l a n , l e a d , o r g a n i z e , m a n a g e , a n d c o n t r o l d ( W h a t d o o p e r a t i o n s m a n a g e r s d o ? e a s y ) 31. Illiteracy and poor diets have been known to cost countries up to what percent of their productivity? a . 2 % b . 5 % c . 1 0 % d . 2 0 % e . 5 0 % d (Productivity variables, moderate) {AACSB: Multiculture and Diversity} 32. Which of the following is not an element of the management process? a. controlling b . l e a d i n g c . p l a n n i n g d . p r i c i n g e . s t a f f i n g d ( W h a t d o o p e r a t i o n s m a n a g e r s d o ? e a s y ) 33. An operations manager is not likely to be involved in a. the design of goods and services to satisfy customers' wants and needs b. the quality of goods and services to satisfy customers' wants and needs c . t h e i d e n t i f i c a t i o n o f c u s t o m e r s ' w a n t s a n d n e e d s d . w o r k s c h e d u l i n g t o m e e t t h e d u e d a t e s p r o m i s e d t o c u s t o m e r s e. maintenance schedules c ( W h a t d o o p e r a t i o n s m a n a g e r s d o ? e a s y ) 34. All of the following decisions fall within the scope of operations management except for a. financial analysis b. design of goods and processes c . l o c a t i o n o f f a c i l i t i e s d . m a n a g i n g q u a l i t y e. All of the above fall within th e scope of operations management. a ( W h a t d o o p e r a t i o n s m a n a g e r s d o ? e a s y ) 535. The Ten Critical Decisions of Operations Management include a. Layout strategy b . M a i n t e n a n c e c. Process and capacity design d . M a n a g i n g q u a l i t y e. all of the above e ( W h y s t u d y O M ? e a s y ) 36. Which of the following is not one of The Ten Critical Decisi ons of Operations Management? a. Layout strategy b . M a i n t e n a n c e c. Process and capacity design d. Mass customization e . S u p p l y c h a i n m a n a g e m e n t d ( W h y s t u d y O M ? m o d e r a t e ) 37. The Ten Critical Decisions of Operations Management include a. Finance/accounting b . A d v e r t i s i n g c. Process and capacity design d . P r i c i n g e. all of the above c ( W h y s t u d y O M ? m o d e r a t e ) 38. Walter Shewhart is listed among the important pe ople of operations management because of his contributions to a . a s s e m b l y l i n e p r o d u c t i o n b. measuring the productivity in the service sector c . j u s t - i n - t i m e i n v e n t o r y m e t h o d s d . s t a t i s t i c a l q u a l i t y c o n t r o l e. all of the above d ( T h e h e r i t a g e o f o p e r a t i o n s m a n a g e m e n t , m o d e r a t e ) 39. Walter Shewhart, in the _____, provided the foun dations for ______ in operations management. a . 1 9 2 0 s ; s t a t i s t i c a l s a m p l i n g b . U n i t e d K i n g d o m ; m a s s p r o d u c t i o n c. U.S. Army; logistics d . n i n e t e e n t h c e n t u r y ; i n t e r c h a n g e a b l e p a r t s e . n o n e o f t h e a b o v e a ( T h e h e r i t a g e o f o p e r a t i o n s m a n a g e m e n t , m o d e r a t e ) 40. Eli Whitney, in the _____, provided the founda tions for ______ in operations management. a . 1 9 2 0 s ; s t a t i s t i c a l s a m p l i n g b . U n i t e d K i n g d o m ; m a s s p r o d u c t i o n c. U.S. Army; logistics d . n i n e t e e n t h c e n t u r y ; i n t e r c h a n g e a b l e p a r t s e . n o n e o f t h e a b o v e d ( T h e h e r i t a g e o f o p e r a t i o n s m a n a g e m e n t , m o d e r a t e ) 641. The person most responsible for popularizing interchangeable parts in manufacturing was a. Frederick Winslow Taylor b . H e n r y F o r d c . E l i W h i t n e y d . W h i t n e y H o u s t o n e . L i l l i a n G i l b r e t h c ( T h e h e r i t a g e o f o p e r a t i o n s m a n a g e m e n t , m o d e r a t e ) 42. The "Father of Scientific Management" is a. Henry Ford b . F r e d e r i c k W . T a y l o r c . W . E d w a r d s D e m i n g d . F r a n k G i l b r e t h e. just a figure of speech, not a reference to a person b ( T h e h e r i t a g e o f o p e r a t i o n s m a n a g e m e n t , e a s y ) 43. Henry Ford is noted for his contributions to a . s t a n d a r d i z a t i o n o f p a r t s b . s t a t i s t i c a l q u a l i t y c o n t r o l c. assembly line operations d . s c i e n t i f i c m a n a g e m e n t e . t i m e a n d m o t i o n s t u d i e s c (The heritage of operations management, easy) 44. Who among the following is associated with cont ributions to quality control in operations management? a. Charles Babbage b . H e n r y F o r d c . F r a n k G i l b r e t h d . W . E d w a r d s D e m i n g e . H e n r i F a y o l d ( T h e h e r i t a g e o f o p e r a t i o n s m a n a g e m e n t , m o d e r a t e ) 45. The field of operations management is shaped by advances in which of the following fields? a . c h e m i s t r y a n d p h y s i c s b . i n d u s t r i a l e n g i n e e r i n g a n d m a n a g e m e n t s c i e n c e c . b i o l o g y a n d a n a t o m y d . i n f o r m a t i o n t e c h n o l o g y e. all of the above e ( T h e h e r i t a g e o f o p e r a t i o n s m a n a g e m e n t , m o d e r a t e ) 46. Which of the following statements is true? a. Almost all services and almost all goods are a mixture of a service and a tangible product. b . A pure good has no tangible product component. c. A pure service has only a tangible product component. d. There is no such thing as a pure good . e . N o n e o f t h e a b o v e i s a t r u e s t a t e m e n t . a (Operations in the service sector, difficult) 747. Which of the following statements is true? a . T h e p e r s o n m o s t r e s p o n s i b l e f o r i n i t i a t i n g u se of interchangeable parts in manufacturing was Eli Whitney. b. The origins of management by exception ar e generally credited to Frederick W. Taylor. c . T h e p e r s o n m o s t r e s p o n s i b l e f o r i n i t i a t i n g u se of interchangeable parts in manufacturing was Walter Shewhart. d. The origins of the scientific management movement are generally credited to Henry Ford. e . T h e p e r s o n m o s t r e s p o n s i b l e f o r i n i t i a t i n g u se of interchangeable parts in manufacturing was Henry Ford. a ( T h e h e r i t a g e o f o p e r a t i o n s m a n a g e m e n t , m o d e r a t e ) 48. The service industry makes up approximately what pe rcentage of all jobs in the United States? a . 1 2 % b . 4 0 % c . 6 6 % d . 7 9 % e . 9 0 % d (Operations in the service sector, moderate) 49. Typical differences between goods and services do not include a . c o s t p e r u n i t b . a b i l i t y t o i n v e n t o r y i t e m s c . t i m i n g o f p r o d u c t i o n a n d c o n s u m p t i o n d . c u s t o m e r i n t e r a c t i o n e . k n o w l e d g e c o n t e n t a (Operations in the service sector, moderate) 50. Which is not true regarding differences between goods and services? a. Services are generally produced and co nsumed simultaneously; tangible goods are not. b. Services tend to be more knowledge-based than products. c. Services tend to have a more inc onsistent product definition than goods. d . G o o d s t e n d t o h a v e h i g h e r c u stomer interaction than services. e . N o n e o f t h e a b o v e i s t r u e . d (Operations in the service sector, moderate) 51. Which of the following is not a typical attribute of goods? a . o u t p u t c a n b e i n v e n t o r i e d b. often easy to automate c. aspects of quality difficult to measure d . o u t p u t c a n b e r e s o l d e . p r o d u c t i o n a n d c o n s u m p t i o n a r e s e p a r a t e c (Operations in the service sector, moderate) 852. Which of the following services is least likely to be unique, i.e., customized to a particular individual's needs? a. dental care b . h a i r d r e s s i n g c. legal services d . e l e m e n t a r y e d u c a t i o n e . c o m p u t e r c o n s u l t i n g d (Operations in the service sector, moderate) 53. Which of the following is not a typical service attribute? a . i n t a n g i b l e p r o d u c t b. easy to store c . c u s t o m e r i n t e r a c t i o n i s h i g h d . s i m u l t a n e o u s p r o d u c t i o n a n d c o n s u m p t i o n e . d i f f i c u l t t o r e s e l l b (Operations in the service sector, moderate) 54. Which of the following statements concerning growth of services is true? a. Services now constitute the largest eco nomic sector in postindustrial societies. b . T h e n u m b e r o f p e o p l e e m p l o y e d i n m a n u f a c t u r i n g h a s m o r e o r l e s s h e l d s t e a d y s i n c e 1 9 5 0 . c . E a c h m a n u f a c t u r i n g e m p l o y e e n o w p r o d uces about 20 times more than in 1950 d. All of the above are true. e . N o n e o f t h e a b o v e i s t r u e . d (Operations in the service sector, moderate) 55. Current trends in operations manage ment include all of the following except a . j u s t - i n - t i m e p e r f o r m a n c e b . r a p i d p r o d u c t d e v e l o p m e n t c. mass customization d . e m p o w e r e d e m p l o y e e s e. All of the above are current trends. e (Exciting new trends in operations management, moderate) 56. Which of the following is not a current trend in operations management? a . j u s t - i n - t i m e p e r f o r m a n c e b . g l o b a l f o c u s c . s u p p l y c h a i n p a r t n e r i n g d. mass customization e. All of the above are current trends. e (Exciting new trends in operations management, moderate) 57. One new trend in operations management is a . g l o b a l f o c u s b. mass customization c . e m p o w e r e d e m p l o y e e s d . r a p i d p r o d u c t d e v e l o p m e n t e . A l l o f t h e a b o v e a r e n e w t r e n d s i n o p e r a t i o n s m a n a g e m e n t . e (Exciting new trends in operations management, moderate) 958. Which of the following statements about trends in operations management is false ? a. Job specialization is giving way to empowered employees. b . L o c a l o r n a t i o n a l f o c u s i s g i v i n g w a y t o g l o b a l f o c u s . c . E n v i r o n m e n t a l l y - s e n s i t i v e p r o d u c t i o n i s g i v i n g w a y t o l o w - c o s t f o c u s . d . R a p i d p r o d u c t d e v e l o p m e n t i s p a r t ly the result of shorter product cycles. e. All of the above statements are true. c (Exciting new trends in operations management, moderate) 59. A foundry produces circular utility access hatches (ma nhole covers). If 120 covers are produced in a 10-hour shift, the productivity of the line is a . 1 . 2 c o v e r s / h r b . 2 c o v e r s / h r c . 1 2 c o v e r s / h r d . 1 2 0 0 c o v e r s / h r e . n o n e o f t h e a b o v e c ( T h e p r o d u c t i v i t y c h a l l e n g e , e a s y ) { A A C S B : A n a l y t i c S k i l l s } 60. A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it would then be a . 1 4 . 4 c o v e r s / h r b . 2 4 c o v e r s / h r c . 2 4 0 v a l v e s / h r d . 1 2 0 0 c o v e r s / h r e . n o n e o f t h e a b o v e a (The productivity challenge, moderate) {AACSB: Analytic Skills} 61. Gibson Valves produces cast bronze valves on an assemb ly line. If 1600 valves are produced in an 8-hour shift, the productivity of the line is a . 2 v a l v e s / h r b . 4 0 v a l v e s / h r c . 8 0 v a l v e s / h r d . 2 0 0 v a l v e s / h r e. 1600 valves/hr d (The productivity challenge, easy) {AACSB: Analytic Skills} 62. Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be a . 1 8 0 v a l v e s / h r b . 2 0 0 v a l v e s / h r c . 2 2 0 v a l v e s / h r d . 8 8 0 v a l v e s / h r e. 1760 valves/hr c (The productivity challenge, moderate) {AACSB: Analytic Skills} 1063. Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 va lves per shift, labor productivity will increase by a . 1 0 % b . 2 0 % c . 2 5 % d . 4 0 % e . 5 0 % c ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) { A A C S B : A n a l y t i c S k i l l s } 64. The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What is the productivity of the plant? a . 2 5 b o x e s / h r b . 5 0 b o x e s / h r c . 5 0 0 0 b o x e s / h r d . n o n e o f t h e a b o v e e . n o t e n o u g h d a t a t o d e t e r m i n e p r o d u c t i v i t y a ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) { A A C S B : A n a l y t i c S k i l l s } 65. The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes were produced by the end of each day. The use of new technology has enabled them to increase productivity by 30%. Productivity is now approximately a . 3 2 . 5 b o x e s / h r b . 4 0 . 6 b o x e s / h r c . 6 2 . 5 b o x e s / h r d . 8 1 . 2 5 b o x e s / h r e . 3 0 0 b o x e s / h r b (The productivity challenge, moderate) {AACSB: Analytic Skills} 66. The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to production? a. It has increased by 50 sets/shift. b. It has increased by 37.5 sets/hr. c. It has increased by 20%. d . I t h a s d e c r e a s e d b y 8 . 3 % . e. It has decreased by 9.1%. c ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) { A A C S B : A n a l y t i c S k i l l s } 67. Productivity measurement is complicated by a . t h e c o m p e t i t i o n ' s o u t p u t b . t h e f a c t t h a t p r e c i s e u n i t s o f m e a s u r e a r e o f t e n u n a v a i l a b l e c . s t a b l e q u a l i t y d. the workforce size e. the type of equipment used b ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) 1168. The total of all outputs produced by the transforma tion process divided by the total of the inputs is a. utilization b . g r e a t e r i n m a n u f a c t u r i n g t h a n i n s e r v i c e s c . d e f i n e d o n l y f o r m a n u f a c t u r i n g f i r m s d . m u l t i f a c t o r p r o d u c t i v i t y e . n o n e o f t h e a b o v e d ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) 69. Which of the following inputs has the greatest potential to increase productivity? a . l a b o r b . g l o b a l i z a t i o n c . m a n a g e m e n t d. capital e . n o n e o f t h e a b o v e c ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) 70. Productivity can be improved by a . i n c r e a s i n g i n p u t s w h i l e h o l d i n g o u t p u t s s t e a d y b . d e c r e a s i n g o u t p u t s w h i l e h o l d i n g i n p u t s s t e a d y c . i n c r e a s i n g i n p u t s a n d o u t p u t s i n t h e s a m e p r o p o r t i o n d . d e c r e a s i n g i n p u t s w h i l e h o l d i n g o u t p u t s s t e a d y e . n o n e o f t h e a b o v e d ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) 71. The largest contributor to productivity increases is ________, estimated to be responsible for _____ of the annual increase. a . m a n a g e m e n t ; o v e r o n e - h a l f b . M r . D e m i n g ; o n e - h a l f c. labor; two-thirds d. capital; 90% e . t e c h n o l o g y ; o v e r o n e - h a l f a ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) 72. The factor responsible for the largest porti on of productivity increase in the U.S. is a . l a b o r b . m a n a g e m e n t c. capital d . a l l t h r e e c o m b i n e d ; i t i s i m p o s s i b l e t o d e t e r m i n e t h e c o n t r i b u t i o n o f i n d i v i d u a l f a c t o r s e. none of these; most productivity increases come from investment spending b ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) 73. Which of the following is not true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector? a. Services are typically labor-intensive. b. Services are often difficu lt to evaluate for quality. c. Services are often an intellect ual task performed by professionals. d. Services are difficult to automate. e . S e r v i c e o p e r a t i o n s a r e t y p i c a l l y c a p i t a l i n t e n s i v e . e ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) 12 74. Three commonly used productivity variables are a. quality, external elements, and precise units of measure b . l a b o r , c a p i t a l , a n d m a n a g e m e n t c . t e c h n o l o g y , r a w m a t e r i a l s , a n d l a b o r d . e d u c a t i o n , d i e t , a n d s o c i a l o v e r h e a d e. quality, efficiency, and low cost b ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) 75. The service sector has lower productivity improve ments than the manufacturing sector because a. the service sector uses less skilled labor than manufacturing b. the quality of output is lower in services than manufacturing c. services usually are labor-intensive d . s e r v i c e s e c t o r p r o d u c t i v i t y i s h a r d t o m e a s u r e e . n o n e o f t h e a b o v e c ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) 76. Productivity tends to be more difficult to impr ove in the service sector because the work is a . o f t e n d i f f i c u l t t o a u t o m a t e b . t y p i c a l l y l a b o r - i n t e n s i v e c. frequently processed individually d. often an intellectual t ask performed by professionals e. all of the above e ( T h e p r o d u c t i v i t y c h a l l e n g e , m o d e r a t e ) 77. Among the ethical and social challenges facing operations managers are a . h o n o r i n g c o m m u n i t y c o m m i t m e n t s b . m a i n t a i n i n g a c l e a n e n v i r o n m e n t c . e f f i c i e n t l y d e v e l o p i n g a n d p r o d u c i n g s a f e q u a l i t y p r o d u c t s d . p r o v i d i n g a s a f e w o r k p l a c e e. all of the above e ( E t h i c s a n d s o c i a l r e s p o n s i b i l i t y , e a s y ) { A A C S B : E t h i c a l R e a s o n i n g } 78. Among the ethical and social challenges facing operations managers are a . h o n o r i n g f i n a n c i a l c o m m i t m e n t s b . m a i n t a i n i n g a c l e a n e n v i r o n m e n t c . d e v e l o p i n g l o w - c o s t p r o d u c t s d. providing an efficient workplace e. all of the above b ( E t h i c s a n d s o c i a l r e s p o n s i b i l i t y , moderate) {AACSB: Ethical Reasoning} 79. Which of the following is not among the ethical and social challenges facing operations managers? a . h o n o r i n g c o m m u n i t y c o m m i t m e n t s b . m a i n t a i n i n g a c l e a n e n v i r o n m e n t c . e f f i c i e n t l y d e v e l o p i n g a n d p r o d u c i n g s a f e q u a l i t y p r o d u c t s d . i n c r e a s i n g e x e c u t i v e p a y e . p r o v i d i n g a s a f e w o r k p l a c e d (Ethics and social responsibility, easy) {AACSB: Ethical Reasoning} 1380. A business’s stakeholders, whose conflicting pers pectives cause ethical and social dilemmas, include a. lenders b . s u p p l i e r s c. owners d. employees e. all of the above e ( E t h i c s a n d s o c i a l r e s p o n s i b i l i t y , e a s y ) { A A C S B : E t h i c a l R e a s o n i n g } FILL-IN-THE-BLANK 81. Starbuck’s stopped requiring signatures on credit-card purchases under $25 in an attempt to reduce _____________________________ . transaction time (or service time) (T he productivity challenge, easy) 82. ______________________ _______ is the set of activities that transforms inputs into goods and services. O p e r a t i o n s m a n a g e m e n t ( W h a t i s o p e r a t i o n s m a n a g e m e n t ? e a s y ) 83. Marketing, Production, and _____________________________ are the three functions that all organizations must perform to create goods and services. finance/accounting (Organizing to produce goods and services, easy) 84. "Should we make or buy this component?" is an issue in the _____________________________ critical decision area. supply chain management (What operations managers do, easy) 85. Henry Ford and _____________________________ ar e credited with the development of the moving assembly line. Charles Sorensen (The heritage of operations management, easy) 86. When a tangible product is not included in a service, it is called a _____________________________. pure service (Operations in the service sector, easy) 87. ______________________ _______ is the ability of the organiza tion to be flexible enough to cater to the individual whims of consumers. M a s s c u s t o m i z a t i o n ( E x c i t i n g n e w t r e n d s in operations management, moderate) 88. _____________________________ is the operations ma nagement trend that moves more decision making to the individual worker. Empowered employees (Exciting new trends in operations management, moderate) 89. ____________________________ is the total of all outputs produced by the transformation process divided by the total of the inputs. Multifactor productivity (The productivity challenge, easy) 1490. Productivity is the ratio of ____________ to _______ __. Using this relationship, productivity can be improved by ______________________ or _________________________. inputs, outputs; reducing inputs while holding outputs constant; increasing outputs while holding inputs constant. (The productivity challenge, moderate) SHORT ANSWER 91. Identify three or more operations-related tasks carried out by Hard Rock Café. Providing custom meals; designing, testing, and costing meals; acquiring, receiving , and storing supplies; recruiting and training empl oyees; preparing employee schedules; designing efficient restaurant layouts. (Global company profile, easy) 92. Identify two operations-related tasks carried out by Hard Rock Café. Match each to its area of the Ten Critical Decisions. Providing custom meals—design of goods and services; designing, testing, and costing meals—design of goods and services; acquiring, receiving , and storing supplies—supply chain management; recruiting and training employees—human resources and job design; preparing employee schedules—intermediate and short-term scheduling; designing efficient restaurant layouts—layout strategy. (Global company profile, moderate) 93. Define operations management. Will your de finition accommodate both manufacturing and service operations? Operations management can be defined as the ma nagement of all activities directly related to the creation of goods and/or services through th e transformation of inputs into outputs. (What is operations management? easy) 94. Identify the items that Fredrick W. Taylor belie ved management should be more responsible for. He believed that management should be mo re responsible for matching employees to the right job, providing the proper training, providing proper work methods and tools, and establishing legitimate incentives for work to be accomplished. (The heritage of operations management, moderate) 95. Operations managers should be we ll versed in what disciplines in order to make good decisions? Management science, information technology, and often one of the biological or physical sciences. (The heritage of operations management, moderate) 96. Why are services typically more difficult to standardize, automate, and make efficient? Services typically require customer interaction, which makes it difficult to standardize, automate, and make efficient. (Opera tions in the service sector, moderate) 97. How do services differ from goods? Identify five ways. Pick from the following: a service is usually in tangible; it is often produced and consumed simultaneously; often unique; it involves high customer interaction; product definition is inconsistent; often knowledge-based; and fre quently dispersed. (Operations in the service sector, moderate) 1598. Services are often knowledge-based. Provide two examples, and explain why they are knowledge- based. Answer will vary, but the textbook used educatio nal, medical, and legal services. (Operations in the service sector, moderate) 99. Why are organizations changing from batch (large ) shipments to just-in-time (JIT) shipments? Organizations are switching to JIT shipments because inventory requires a large financial investment, and impedes the responsiveness to ch anges in the marketplace. (Exciting new trends in operations management, moderate) 100. Why are organizations becoming more global? Organizations are becoming more global with th e decline in the cost of communication and transportation. Additionally, resources—capita l, material, talent, and labor--are also becoming more global. (Exciting new trends in operations management) 101. Identify the three productivity variables used in the text. The three common variables are labor, capital, and management. (Productivity variables, moderate) 102. What is a knowledge society? A knowledge society is one in which much of the labor force has migrated from manual work to work based on knowledge. (The productivity challenge, moderate) 103. Why are operations managers faced wi th ethical and social challenges? Businesses have diverse stakeholders, which include owners, employees, lenders, and distributors. These stakeholders hold conf licting perspectives. (Ethics and social responsibility, easy) {AACSB: Ethical Reasoning} 104. What are some of the ethical and social challenges faced by operations managers? Efficiently developing and producing sa fe quality products; maintaining a clean environment; providing a safe workplace; honoring community commitments. (Ethics and social responsibility, easy) {AACSB: Ethical Reasoning} 105. As the administrative manager in a law office, you have been asked to develop a system for evaluating the productivity of the 15 lawyers in the office. What difficulties are you going to have in doing this, and how are you going to overcome them? P r o d u c t i v i t y m e a s u r e r s f o r a l a w o f f i c e a r e d i f f i c u l t . S i m p l e c r i t e r i a , l i k e n u m b e r o f c a s e s processed, fail to consider complexity of the ca se. Even counting wins is difficult, as many cases are settled with some sort of compromise. External elements such as the quality of the opposing counsel and the tenacity of the oppo sition also make counting look rather silly. Categories of cases can help—(i.e., uncontested divorce, no personal injury auto case, etc.) However, many firms end up counting hours billed. This in turns leads to other problems, as noted by the number of false billing cases. (The productivity challenge, moderate) {AACSB: Reflective Thinking}